CHAMPIONSHIP clubs have agreed to the implementation of a salary cap linked to their income from next season.

Those with the lowest revenue will be limited to spending £250,000 on their squads, while the richest sides can commit up to £500,000.

The move comes amid fears over the viability of many second-tier outfits, in what has been a tumultuous year for the competition.

A new Salford club began in the Championship when the old one was liquidated following relegation from Super League and long-standing financial issues.

Featherstone Rovers were removed from the competition just a week before it began in January, having entered administration the previous month.

And two more clubs have been revived mid-season in Halifax Panthers, who were wound up in February over unpaid tax bills, and North Wales Crusaders, whose licence was transferred to a new company only an interim basis last month.

North Wales’ 134-0 home defeat to big-spending, unbeaten league leaders London Broncos on Sunday exposed the seismic gap at present between the division’s haves and have nots.

Next season, each team’s salary cap will be linked to their turnover over the past two years’ accounting period.

Those with annual revenue under £600,000 will be subject to the lowest cap of £250,000.

Revenue between £601,000 and £750,000 will bring a £300,000 cap, while a £400,000 limit will be in place for clubs with turnover between £751,000 and £999,000.

To spend the maximum £500,000, clubs will require revenue of at least £1 million.

The Rugby Football League say they will work with clubs to confirm their cap before the end of this month, assessing audited accounts.

Clubs can apply for an increased spend beyond their cap if they have already committed to player contracts for next season, but this will be subject to a more rigorous financial test.

A proposal has also been made to reduce the maximum number of overseas players permitted in each squad to seven in 2027 and then five in 2028. There is currently no limit.

RFL chair Nigel Wood, whose strategic review conducted last year included the recommendation of a tighter salary cap, believes the changes – which will now go to the RFL board for ratification – will help avoid more clubs experiencing financial difficulties.

“It is surely beyond dispute that spending by some poorly-run clubs has been unsustainable for a number of years and in many cases the inevitable then happens,” said Wood.

“Club financial failure is a contagious stain on the sport and causes considerable upheaval for all the other clubs in the competition, some of whom have competed for decades without financial trauma.

“We want the rule book to protect and support the well-run clubs as far as possible.

“Linking spend to income does not hamper progressive clubs looking to build but it should act as something of a handbrake on spending that is unsustainable.

“It also encourages clubs to maximise their revenue streams as, the more they generate, they more they are allowed to utilise on their squad, and I am delighted that the Championship clubs have unanimously supported our proposals.

“I want to be clear that the responsibility for club financial performance lays solely on the club boards and management that are legally responsible.

“However, the RFL concluded that the regulatory framework needs to be stronger to assist some clubs in making better spending decisions, to avoid the numerous historical issues that have surfaced over the past few months.”

All Super League clubs are subject to an equal salary cap of £2.1 million, albeit with various dispensations including for marquee players.